Dr. John Paglia Produces SBA Report on Diversity Trends in Small Business Investing

Dr. John Paglia, associate dean and professor of finance, is one of the co-authors of a newly published Small Business Association study that shows that the racial and gender makeup of investment boards is tied directly to their investment decisions, especially with regard to the race and gender of the owners of companies in which they invest.

Regarding the results of the study, Paglia said, “There is still more to do, but from this research, it is clear women and minority leaders at small business investment companies play an important role in bridging a lending gap to women and minority-owned small businesses. Identifying these relationships at the investment company level helps to close that gap, and we’re honored to lend our expertise in private capital and finance to this important effort to promote diversity in small business financing.” In a blog post accompanying the announcement, SBA Administrator Maria Contreras-Sweet noted that Dr. Paglia “found that diverse investors are more likely to invest in diverse companies.”